Capital Radio Continues To Impede GCap Media’s Growth
Pre-tax profits at GCap Media are down 32% year on year, according to the group’s interim results for the six months to 30 September 2006.
The company made £8.4 million compared to £12.4 million in the same period last year. Flagship London station, Capital Radio, has seen its revenue down by £6.3 million year on year, deflated due to a difficult ad market and the implementation of its no more than two ads policy (see Ad Breaks and Minutage Cut on Flagship Capital Radio from December). Other stations have also implemented the move (see Planet Rock To Adopt ‘Two Ad’ Policy).
GCap reported revenues were down 8.4% year on year to £102.2 million. However, excluding Capital Radio they were down just 4%.
The company said that Capital Radio’s results are in line with expectations and that a recovery plan is on track with the launch of marketing activity, which it began in October (see Capital Radio In New Ad Campaign).
“Despite a very difficult advertising market, we are confident that we are taking the right steps to align our business to a rapidly changing environment,” chief executive of GCap Media, Ralph Bernard, said in a statement.
“During the first half, we have achieved a series of key operational goals. We have increased reach, share and hours across the One Network and entered the next phase of our recovery plan for Capital Radio with the launch of a new marketing campaign.
“The sale of the two Century stations (see
GCap Sells Radio Stations To Guardian Media Group Heart 106.2 FM Retakes London Top Spot From Magic FM).
In addition, the station’s share of listening dropped a marginal 0.3% points period on period. Capital remained the station with the third highest weekly reach in London, with a figure of 1.4 million.
Ralph Bernard will be fielding questions as he sits on the panel at MediaTel Group’s Future Of Radio seminar tomorrow. The event will take place at One Great George Street, London, W1, from 9.30am. There are a handful of tickets still available, priced at £115 + VAT. To book, click here.
MediaTel Insight’s Digital Radio Executive Report will be available for a £50 discount to delegates, now £175.